Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business press reporter

It is the last over of the cricket match, with India needing 17 go to win versus Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged guy is viewing the game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his best hand.

He has actually made more than 10 employ the last thirty minutes - not to discuss the match however to keep modifying his bet.

Five minutes earlier his money was on Australia, and now as the Indian batsman gets prepared to face the last over he's changed his mind.

"I think India is winning, make the change," he informs his bookie on the phone.

And a few minutes later his prediction comes true, as India wins the match in a nail-biting surface.

"I have made $200 today," he states with a childish glee.

For more than three years he's been sports betting on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, prohibited wagering syndicates grow in the nation.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting market deserves some $150bn a year. And much of that gambling cash is directed towards cricket.

With no legal avenue, punters place bets using their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

The majority of these transactions include so-called "black cash", which is cash not declared to the taxman.

The 1867 Public Gambling Act bars any type of gambling in India, however unlike in the US which has a law prohibiting web gambling, there is nothing similar here.

And overseas wagering companies are using this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot people have actually signed up accounts with offshore companies.

"Legally you can escape [with this], as the law is uncertain for online gaming," states Mumbai- based legal representative HP Ranina.

But in spite of this, it is "offline sports betting", done through call which control the market.

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the concept, saying it would assist clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to recommend modifications in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

Two franchises have actually been prohibited for two years after some players and team authorities were condemned of fixing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised wagering will generate tax incomes for the exchequer that might total up to $2bn a year.

Even gamblers feel that legalising sports betting is a relocation in the right instructions.

"I do not mind paying some money out my profits, as long as I can bet openly," states our cricket gambler.

It would also open a huge organization chance for licensed bookies and international online wagering companies to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue many, by helping make transactions associated with gambling more transparent.

"If you work together with wagering companies, you will have a really reliable method of stamping out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But many likewise believe, that the taxes imposed on the gambler and the bookie will need to be reasonable to make it attractive enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be illegal sports betting because (some) individuals wouldn't wish to leave an audit path by getting in the white market," states Mr Oborne.

He adds that individuals who use unaccounted money to position big bets will never bet legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a tough idea to sell.

"Although many people are included in some sort of gaming - it's still a questionable concern for many," states our unnamed punter.

And offered that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting in their territory.

"The procedure is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this becoming a reality anytime soon."

Yet with the concept having been endorsed by an official panel for the very first time, a minimum of a dispute has actually sparked around a topic - which up until now was thought about a taboo.